Financial Review Article

[FormerLurker]

Read an interesting article in the FR today regarding the difficulty in getting commercial funding and how they anticipate the situation continuing for upto 2 years (sadly I don't have a link).

Wanted to get some thoughts on this from those out there doing it atm agree/disagree/banks make you cry?

 

[Aaron Sice]

i don't see how someone in a FT job can be a secure bet for lending when the same bank won't lend to their employer.

stoopid.

 

[Rolf Latham]

meh

good money for good deals ..............hard work still though because the number of lenders that want to do any real deals is still slim.

Im still blown away by some banks that are ok to lend say 4 mill, but want the principal reduced by 50 % in 3 years...........

ta
rolf

 

[Shaneelastic]

a recent deal ive seen.
12 Million purchase price
65% loan limited recourse
unit trust set up with up to 15 investors

 

[WinstonWolfe]

Im still blown away by some banks that are ok to lend say 4 mill, but want the principal reduced by 50 % in 3 years...........

ta
rolf

They must attach a lot of risk to the future of Australian business and/or foreign credit supply to use a condition like that.

 

[Kenster]

... difficulty in getting commercial funding and how they anticipate the situation continuing for upto 2 years...

Cup half full cap says commercial prices will be depressed for a further 2 years?

Is this an awesome news for new entrants to the CIP market?

I love this sound

 

[PrimeCommercial]

Cup half full cap says commercial prices will be depressed for a further 2 years?

Is this an awesome news for new entrants to the CIP market?

I love this sound

I'd have to agree Kenster.

Nothing in the Lower North Shore area is selling that's showing less than an 8% net return. I've seen several 'fire sale' deals that have gone through recently. Good news for buyers.

 

[APerry]

Commercial funding has started getting easier, although it remains infinately more difficult than pre GFC. Westpac and Bank West were almost totally out of the commercial property market for some time, but they are now back and Westpac is pricing quite aggressively. A couple of months ago CBA droped their required ICR from 1.3 to 1.25. There are also some mortgage funds starting to lend again, although mostly for smaller deals only. Banksia is going to start funding large construction deals again early next year.

 

[aaarghhh]

A couple of months ago CBA droped their required ICR from 1.3 to 1.25.

Beginner question.. Whats ICR ?

 

[Rickardo]

Beginner question.. Whats ICR ?

Interest Cover Ratio, i believe it's calculated as:

Net profit before tax + Interest divided by Interest